Tag: Motley Fool

  • The 4DMedical (ASX:4DX) share price is down 38% in 2021

    falling healthcare asx share price Mesoblast capital raising

    The 4DMedical Ltd (ASX: 4DX) share price has spent much of this year falling from grace after a stellar end to 2020.

    After the company completed its initial public offering (IPO) in August 2020, its shares grew a whopping 71% to reach their highest ever closing price of $2.72 ­by mid-October.

    After that, 4DMedical shares were incredibly volatile until the start of the new year, when their mostly downward spiral began.

    Over the course of 2021, the 4DMedical share price has fallen by more than 38%.

    So, what’s been happening with the medical imaging company? Let’s take a look.

    What is 4DMedical?

    4DMedical is a software company that specialises in software for medical purposes.

    Its crown jewel is its four-dimensional lung imaging software. The software integrates with existing x-ray equipment to convert traditional x-rays into four-dimensional scans.

    The software allows 4DMedical to deploy a suite of respiratory diagnostic products across its network of clinics and hospitals.

    It’s also developing the world’s first lung function scanner which will allow for safe, easy and fast lung analysis for both adults and children.

    What drove 4DMedical’s growth?

    The company gained the attention of ASX investors in the final months of 2020. Its share price went from $1.59 on its first day listed, to $2.43 by the end of the year.

    4DMedical shares really started to grow exponentially after the company was involved in the Goldman Sachs Healthcare Forum on 8 October.

    Goldman Sachs pointed to a number of positives in the company’s business model. It said that current diagnostics are outdated in the lung-health sector, which has a US$31 billion per annum global market. The 4DMedical share price jumped almost 43% between 7 and 9 October alone.

    4DMedical’s software had also received TGA approval late in September. Furthermore, on 18 December the company’s software completed its first commercial scan in Australia.

    4DMedical shares on the slide

    Since the beginning of 2021, the 4DMedical share price has been generally trending downwards, despite what appears to have been a raft of good news.

    In late January, the company announced its lung diagnostic software was to commence its first clinical pilot in the US.

    The following day, 4DMedical shared its quarterly activities report for the second quarter of the 2021 financial year, which was largely positive.

    4DMedical released its maiden half-year results in February. While its results showed a simultaneous increase in losses and a decrease in profits, the company’s management stated this was part of its plan.

    In March, 4DMedical received a government grant and began a capital raising program. The grant was from the federal government and worth $28.9 million. 4DMedical also shared it would complete a $40 million capital raising project. The company said the cash would be used to develop the world’s first lung function scanners, providing safe, easy and rapid lung analysis for adults and children.

    A few weeks later, the company completed another capital raising, this time a share purchase plan worth $6 million.

    Despite releasing a stable third-quarter report in late April, the 4DMedical share price can now be found resting at $1.49. Only time will tell if it will return to its former glory. 

    Where to invest $1,000 right now

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    Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • How this new forecast could put ASX copper shares under pressure

    Two stamps with 'supply' and 'demand' written on them

    ASX copper shares have broadly outperformed over the past year.

    With soaring copper prices, industry heavyweight Oz Minerals Limited (ASX: OZL) has seen its share price surge 187% over the past 12 months.

    The Sandfire Resources Ltd (ASX: SFR) share price is up 64% at that same time, delivering more than twice the gains posted by the S&P/ASX 200 Index (ASX: XJO).

    But ASX copper shares could be in for some trouble. After widely rallying for much of the past year, the party may be nearing its end.

    That’s according to the latest supply and demand forecast from the International Copper Study Group (ICSG).

    Is the copper price a bubble?

    Economics 101 dictates that when demand for an asset is strong and supply is tight, prices rise. Conversely, when the supply of an asset exceeds ready demand, prices tend to fall.

    Many analysts continue to predict surging demand and constricted supplies of copper over the next several years. But ICSG revealed on Monday that the Group has a decidedly different outlook. It forecasts that copper supplies will exceed copper demand in the latter half of this year and into 2022.

    Responding to that assertion, Daniel Briesemann, an analyst at Commerzbank AG, wrote in a note (sourced by Bloomberg):

    This assessment of the ICSG contrasts sharply with those of many other market participants, who envisage another seriously undersupplied copper market this year. If the ICSG turns out to be right, the high copper price would not be justified from a fundamental perspective and should be noticeably lower.

    ASX copper shares hoping Goldman Sachs is right

    ASX copper shares (and their shareholders) will be pinning their hopes on Goldman Sachs’ copper price forecast over ICSG’s.

    Citing an inelastic supply for commodities like copper (you can’t dig a new mine overnight), along with soaring demand for the red metal from the global clean energy transition and infrastructure splurge, Goldman is decidedly bullish on copper.

    Goldman forecasts copper will fetch US$11,000 per tonne inside of 12 months. It’s currently trading for US$9,996 per tonne.

    Looking further ahead, Goldman is predicting copper will reach US$11,875 per tonne in 2022 and edge still higher to US$12,000 per tonne in 2023.

    If ICSG is correct, however, copper prices will likely be much lower. And ASX copper shares could see their share prices come under pressure.

    ICSG doesn’t foresee any significant increase in copper demand this year, while it forecasts an increase in new supply from copper mines. Although ICSG didn’t provide any future price estimates, Bloomberg reports that the Group expects “the global refined copper surplus will reach 110,000 tons in 2022 from about 80,000 tons in 2021”.

    In 2020 there was a copper deficit of approximately 600,000 tons. That deficit helped drive a 62% increase in the price of copper since 3 January 2020.

    Depending on which forecasts prove closer to the truth, ASX copper shares could be facing welcome tailwinds or battling unwelcome headwinds in the year ahead.

    Where to invest $1,000 right now

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Resimac (ASX:RMC) share price lifts after settling another $1 billion deal

    three building blocks with smiley faces, indicating a rise in the ASX share price

    The Resimac Group Ltd (ASX: RMC) share price is etching higher today after the company settled another $1 billion bond-lending deal.

    Resimac shares are up 1.26% to $2.42 at the time of writing.

    Resimac is a major Australian non-bank lending company, specialising in residential mortgage lending and multi-channel aspects of the distribution business, like prime and specialist lending.

    Let’s take a look at what’s driving the Resimac share price today.

    Resimac’s latest deals

    Resimac announced the financial close of its non-conforming residential mortgage-backed securities (RMBS) transactions in the 2021 ‘Resimac Bastille Series’. This is Resimac’s second RMBS transaction for 2021 and represents 30% of its total non-conforming funding.

    As Resimac group treasurer Andrew Marsden explained:

    This deal supports the market-leading offering that Resimac provides to self-employed borrowers and borrowers who fall outside traditional lending guidelines.

    Resimac’s growth aspirations are supported by strong demand for RMBS in the capital markets, with sound underlying credit performance as business conditions improve.

    RMBS deals are bonds and can be seen as similar to tranche-based mortgage lending in the sense that the bonds are secured against a large pool of residential mortgage loans.

    Specifically, they’re interest-backed debt facilities, that are financed by the interest Resimac customers pay the company on their mortgage loans. Resimac has now sealed $1 billion valued RMBS transaction deals for the past three months running.

    More on Resimac’s scope

    The Resimac group operates in targeted market segments and asset classes in Australia and New Zealand. Its bread and butter is home loans and was named the non-bank lender of the year in 2020. The company has more than 50,000 customers with a portfolio of home loans worth close to $13 billion and assets under management of more than $15 billion.

    Resimac also has issued more than $35 billion of mortgage-backed securities in domestic and global markets since 1987 and works closely with multiple major banks.

    Resimac share price snapshot

    The Resimac share price has performed well over the past 12 months, lifting 190%. Its upward trajectory has slowed somewhat this year, but Resimac shares are still up 11% since the start of 2021.

    Where to invest $1,000 right now

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    Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Octanex (ASX:OXX) share price booms 11% with ‘exciting period ahead’

    A drawing of a rocket follows a chart up, indicating share price lift

    The Octanex Ltd (ASX: OXX) share price is surging today after the company announced its exploration program funding has been secured.

    Octanex shares are currently trading 11.66% higher at 6 cents per share, after lifting by as much as 28% earlier today.

    Octanex is a microcap oil and gas company engaged in exploring and production activities in offshore Western Australia. The company’s projects include the Ophir oil field, Greater cornea fields, and the Ascalon gas discovery.

    Octanex’s new exploration funding

    The company raised the exploration funds through successfully completing a capital raising placement. The placement consisted of 15,000,000 ordinary fully paid shares at 5 cents per share with one-for-two unlisted options, to raise $750,000 (before costs).

    The company acquired the capital through sophisticated and professional investors, which were introduced through a private equity firm.

    According to the company, the funds raised will be used to advance exploration at the company’s projects, particularly its Sefton Project initiative where the company has established an extensive tenement position in this region where there is very little modern exploration.

    Octanex management comments

    Octanex Chair, Geoff Albers, explained further how the funds will be used:

    The placement funds will be used to advance our knowledge of the company’s Sefton Project tenements. It will be an exciting period ahead for Octanex as we initiate our planned programs to unlock the geology of our tenements. Octanex thanks new and existing shareholders for their support. We look forward to delivering on our exploration programs.

    Octanex share price snapshot

    The Octanex share price has lost 17% overall the past week despite today’s huge gains, but is still up a whopping 120% this month, and 450% over the past 12 months.

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    Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • APA (ASX:APA) share price falls despite expansion and new agreement

    asx share price fall represented by man shrugging in disbelief

    The APA Group (ASX: APA) share price is down today despite the company announcing two positive updates.

    At the time of writing, the energy infrastructure company’s shares are swapping hands for $9.98, down 0.30%.

    Let’s take a closer look and see what APA released to the ASX.

    East Coast Grid pipeline network expansion

    According to its release, APA advised that it will begin expanding capacity on its East Coast Grid. This will link Queensland with southern markets. This follows a Final Investment Decision (FID) that was reached on the project due to strong customer demand for transportation capacity.

    APA projected that without investing in the East Coast Grid, winter gas supply risks could arise from 2023. This was taken in the context of existing contract positions and available capacity, along with market forecasts.

    The expansion will be undertaken in two stages, and incur a capital cost of around $270 million. Once completed, winter peak capacity will increase by up to 25% through additional works on both the Southwest Queensland Pipeline (SWQP) and the Moomba Sydney Pipeline (MSP). Both projects are critical in delivering gas from Queensland and the Northern Territory to southern markets.

    The first stage of the East Coast Grid is expected to be finished within the first quarter of 2023. The second stage will be staged to meet customer demand, with completion towards the end of that same year.

    APA noted that a potential third stage could be included, adding a further 25% transportation capacity. Engineering and design works are continuing to lay out the project scope and format.

    APA CEO and managing director, Rob Wheals commented:

    Through the investments we’re making today in the staged 25% expansion of the East Coast Grid, APA is playing a critical role in delivering additional energy security for southern gas markets ahead of forecast supply risks.

    Today’s announcements reinforce the competitiveness of APA’s East Coast Grid and the critical role it plays in delivering for our customers and for the economy through cost effective, safe and reliable transportation of Australian domestic gas from northern gas producers to southern markets.

    New East Coast Grid agreement

    In further news, APA revealed that it has signed a new deal with a leading energy provider, Origin Energy Ltd(ASX: ORG).

    The Gas Transportation Agreement (GTA) will see APA support Origin Energy’s needs in the southern markets. The contract is set to commence on 1 January 2023, before the completion of the East Coast Grid pipeline network expansion.

    APA highlighted that under this agreement, Origin could potentially supply over half of New South Wales’ winter demand for gas.

    The agreement will run for an initial 3-year period with an option to extend by a further two years. It is assumed that the initial deal will generate roughly $190 million in revenue for APA.

    About the APA share price

    The APA share price has fallen 10% since this time last year, however, year-to-date performance is marginally higher at 3%.

    APA has a market capitalisation of about $11.8 billion, with more than 1.18 billion shares on issue.

    Where to invest $1,000 right now

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    Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why the Podium Minerals (ASX:POD) share price soared 27% today

    South32 share price

    Podium Minerals Ltd (ASX: POD) released high grade and value assay results from its Parks Reef Project today, sending the company’s share price soaring. Earlier today, the Podium Minerals share price rocketed 27% to an all-time high of 54 cents.

    Unfortunately for shareholders, with only minutes of trade remaining, Podium shares have retreated to 45 cents, which is still a 5.88% gain for the day.

    Let’s take a closer look at the mining company’s latest assay results.

    Park Reef assay results

    The assay results announced today from Podium Minerals’ Parks Reef Project follow on from the site’s previous positive results.

    The company has conducted further testing, using a more expensive assay technique to find rhodium and iridium. 

    Podium Minerals’ extra testing paid off, revealing up to 1.35 grams per tonne of high-grade rhodium and up to 0.7 grams per tonne of iridium.

    Previously, Podium Minerals had found platinum, palladium and gold at the project using conventional assay techniques.

    The company’s inferred mineral resources for Parks Reef contains 1,390,000 ounces of combined platinum, palladium and gold plus base metal credits with 53,900 tonnes of copper. The new rhodium results aren’t included in the project’s mineral resources due to limited testing having been completed.

    According to the company’s release, rhodium is known to be the best catalyst for the treatment of gasoline nitrogen oxides emissions. Podium also said iridium has an extremely high melting point and is the most corrosion-resistant metal known. It’s often used as a hardening agent together with other platinum-grade metals.

    Commentary from management

    Podium Minerals executive chair Clayton Dodd commented on the findings, saying:

    We are delighted with these initial results for Rhodium and Iridium and when combined with the results from the Platinum, Palladium and Gold assays from the same drill holes, unquestionably they represent the most significant results to date from Parks Reef.

    With current rhodium prices some 20 times and iridium five times that of the current platinum price, it doesn’t take a lot of grade of either to have a significant impact on the estimated weighted average price per Podium [platinum grade minerals] ounce.

    Podium Minerals share price snapshot

    The Podium Minerals share price is having a party on the ASX lately, with today’s news just its latest boost.

    Currently, the Podium Minerals share price is up 309% year to date. It’s also up a whopping 2,150% over the last 12 months.

    The company has a market capitalisation of around $119 million, with approximately 280 million shares outstanding.

    Where to invest $1,000 right now

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  • Top broker tips Super Retail (ASX:SUL) share price to smash the market

    A happy shopper lifts her bags high, indicating a rising share price in ASX retail companies

    The Super Retail Group Ltd (ASX: SUL) share price is pushing higher on Wednesday.

    In afternoon trade, the retail conglomerate’s shares are up 1.5% to $11.90.

    Today’s gain means the Super Retail share price is now up 94% since this time last year.

    Is the Super Retail share price still good value?

    The good news is that if you missed out on the incredible gains made by the Super Retail share price over the last 12 months, it still may not be too late to invest.

    According to a note out of Goldman Sachs this morning, its analysts have responded to Super Retail’s trading update by retaining their buy rating and $15.00 price target on its shares.

    Based on the current Super Retail share price, this implies potential upside of 26% over the next 12 months excluding dividends.

    If you include the 84 cents per share fully franked dividend that Goldman expects Super Retail to pay in FY 2021, this potential return stretches to over 33%.

    What did Goldman Sachs say?

    Goldman was pleased with Super Retail’s trading update and believes it is well-placed to deliver a strong full year result.

    It commented: “Super Retail provided a trading update reflecting further strong momentum in sales growth across all divisions. Group LFL sales were +28% for the 44 weeks YTD, implying +37% for the latest 11 weeks, an acceleration vs. 30.5% in the 1st 7 weeks of 2H21.”

    “While pcp trading was weak in April (-26.2%), we estimate 2yr CAGR growth of c. 11.6% for the 11 weeks implying momentum has remained strong vs. our expectations even when adjusted for the volatility in the base. Our revised sales forecasts reflect a 2 year CAGR growth of c. 11.7% for the remainder of 2H21.”

    Goldman also notes that management spoke positively about margins and its inventory position.

    Overall, this supports the broker’s view that Super Retail’s brands are going to continue to benefit whilst international borders remain shut.

    It said: “The ongoing momentum in trading for SUL reinforces our view that the group’s brands are likely to see prolonged elevated trading due to its exposure to categories benefiting from heightened domestic tourism.”

    “Overall, we revise group EBIT forecasts by +4.1% in FY21 but less materially over FY22/FY23 (+0.1%). Our 12m Target Price on SUL remains unchanged at A$15, offering a total potential return of c. +35.2%. We maintain our Buy rating on SUL,” Goldman concluded.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Afterpay (ASX:APT) share price tumbles despite investor presentation

    Scared, wide-eyed man in pink t-shirt with hands covering mouth

    The Afterpay Ltd (ASX: APT) share price is out of form on Wednesday and sinking lower.

    At the time of writing, the payments company’s shares are down 3.5% to $106.91.

    This latest decline means the Afterpay share price is now down 33% from its 52-week high.

    Why is the Afterpay share price sinking today?

    Investors have been selling Afterpay’s shares due to weakness in the tech sector on Wednesday. This has been driven by a very poor night of trade on the tech-focused Nasdaq index overnight.

    According to CNBC, there are a number of potential reasons for the weakness in tech stocks. This includes fears about rising inflation, concerns the US Federal Reserve may have to taper monetary stimulus earlier than anticipated, and speculation that corporate tax rates will increase.

    Whatever the reason, the concerns have spread to the Australian share market and have sent the S&P/ASX All Technology Index (ASX: XTX) down 1.5% this afternoon. This compares to a 0.5% gain by the S&P/ASX 200 Index (ASX: XJO).

    Afterpay presentation

    Not even the release of a presentation ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) conference has been able to support the Afterpay share price.

    While the presentation didn’t include any new sales data, it did highlight a number of positives.

    One of those was its strong performance during the third quarter. For the three months ended 31 March, Afterpay reported a 104% increase in underlying sales to $5.2 billion. This was driven by increases of 211% and 277% in the United States and United Kingdom, respectively.

    At the end of the period there were 14.6 million active customers globally, which was up 75% since the same time last year.

    What else?

    Afterpay also highlighted the quality of its customer base and the benefits of its platform for consumers.

    Management notes that contrary to popular opinion, Afterpay customers in Australia have lower personal liabilities than non-Afterpay customers.

    It explained: “This is not the result of demographic differences. A like-for-like comparison with a matched group (i.e. similar age, gender and income as Afterpay customers) shows that Afterpay customers have lower personal liabilities than similar people who do not use Afterpay. Afterpay customers also save more and have higher incomes.”

    As for the benefits that consumers get from using Afterpay, chief among them is credit card fee savings. The company estimates that Afterpay saves customers the equivalent of $110 million in credit card fees each year.

    Unfortunately, though, despite how positive the presentation was, it hasn’t been enough to prop up the Afterpay share price today.

    Where to invest $1,000 right now

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Carnaby (ASX:CNB) share price strikes gold and shoots 14% higher

    Hand holding gold nugget ASX stocks buy

    The Carnaby Resources Ltd (ASX: CNB) share price is shooting higher today after the company provided an update on its Strelley gold project

    Carnaby shares lifted by as much as 14% to 36.5 cents per share before dropping back slightly. At the time of writing, the Carnaby share price is sitting at 35 cents, up 9.38% on yesterday’s close.

    Carnaby is an Australia-based mineral exploration company, engaged in acquiring, exploring, and developing gold and other mineral deposits. 

    Carnaby’s high-grade gold finding

    Carnaby’s market update today reported that intrusive-hosted gold mineralisation was intersected for the first time at its Strelley gold project, highlighting the potential for “Hemi style” gold mineralisation within Carnaby’s large 442 square kilometre tenure.

    Hemi refers to a highly lucrative gold mine operated by De Grey Mining (ASX: DEG) in the region.

    The Strelley project is 100% owned by Carnaby and located in the Pilbara region of Western Australia.

    The company also noted that its recently discovered intrusion within the Bastion Prospect remains “completely open and untested” to the north for two kilometres. 

    One of the company’s drill holes, the Bastion Prospect diamond drill hole, intersected a “broad mineralised intrusion”. The company report the following assays: 19 metres at 0.3 g/t gold from 136 metres deep, including six metres at 0.6 g/t gold from 149 metres and 0.6 metres at 3.2 g/t gold from 153.4 metres deep.

    Carnaby management comments

    Carnaby’s managing director Rob Watkins commented on the results:

    Hitting potentially “Hemi Style” intrusion hosted gold mineralisation at the Bastion Prospect in the first ever diamond drill holes drilled at Strelley is highly significant and has materially increased the potential of the entire region. We look forward to receiving additional results over the coming weeks and following up with a concerted RC [reverse circulation] drilling program soon.

    Carnaby share price snapshot

    The Carnaby share price has now risen 45% the past month and 400% over the past 12 months, but has lost more than 7% on two separate days over the past week.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Tesla boss: ASX lithium shares set to boom

    Row of lithium batteries

    The ASX lithium sector has long been an area of interest from ASX investors. Since the days of the 2017 lithium bubble, interest in the sector has been on the rise again. This can be seen in the share prices of some of the ASX’s largest lithium plays. Take Pilbara Minerals Ltd (ASX: PLS), whose shares are up more than 500% over the past 12 months. Galaxy Resources Limited (ASX: GXY) has enjoyed gains of around 450% over the same period. Orocobre Limited (ASX: ORE) shares, 230%.

    Much of this share price buying pressure has arguably come from the assumption that there is a coming surge in demand for lithium. A surge driven by the adoption of electric cars, vehicles and batteries. Including those from Tesla Inc (NASDAQ: TSLA).

    Lithium is a key ingredient in the lithium-ion battery – the most popular design for rechargeable batteries across the board. As such, many investors are hoping that the mass adoption of electric vehicles across the globe will result in a supply squeeze for lithium.

    An electric future for ASX lithium shares?

    Well, those hopeful investors might be encouraged today. According to a report in the Australian Financial Review (AFR), the head of Tesla’s energy business in the Asia-Pacific, Mark Twidell, says Australia is in a “prime position” to harvest much of the gains in the lithium sector that he sees coming.

    Mr Twidell headed the team that was responsible for South Australia’s ‘big battery’ development that was completed by Tesla in 2018. It now forms a core part of the state’s electricity grid. He was speaking at a Southstart conference for entrepreneurs in Adelaide. Twidell reportedly told the conference that demand for lithium is indeed rising as electric vehicles and large-storage batteries usage ramps up. Predicting that the lithium-ion battery value chain is forecast to be $400 billion by 2030, Mr Twidell reckons Australia’s substantial lithium deposits bode well for us.

    “It’s silly to fight to say the transition isn’t happening. It’s happening quickly… Let’s actually increase the benefits to Australia” he was quoted as stating. “It’s the economics at the end of the day which transitions us to where we are going… The environmental benefits make sense, but economics will see us through”.

    The report concludes by quoting broker UBS. UBS predicts electric vehicle sales will be around 20% of the total vehicle sales by 2025. That’s up from 4% in 2020.

    No doubt many ASX lithium investors will be in furious agreement with Mr Twiwell today.

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    Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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